The Nikkei 225Average closed lower on following a shock resignation announcement by Prime Minister Shinzo Abe, with the Nikkei down by 0.5% as political uncertainty weighed on the market amid thin trade. Sales of futures contributed to the decline, which saw shares of banks such as Sumitomo Mitsui Financial Group slide.

But surging U.S. crude oil prices lifted oil counters across the region with Australia's Santos and Woodside Petroleum, Japan's Nippon Oil and Inpex Holdings and South Korea's SK Energy all advancing.

South Korea's KOSPI shed 1.8% as firms dependent on China such as POSCO fell on concern South Korea's top export destination will raise its interest rates as early as this week due to higher inflation. Lenders such as Kookmin Bank also fell a day after Standard and Poor's said core profitability in the sector is facing pressure, while Hyundai Merchant Marine dived 10.7% on news regulators are probing a recent surge in its share price for signs of illegal activity.